Ratios & Harmonics: a Different Way to Trade | Page 100 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

Learning to trade with harmonics 11 replies

Time for Change - Pivots & Harmonics to freedom 67 replies

180 reasons to trade Harmonics and Patterns 13 replies

Group Trading based on Elliott wave and Harmonics 0 replies

Attachments: Ratios & Harmonics: a Different Way to Trade
Exit Attachments

Ratios & Harmonics: a Different Way to Trade

  • #1,981
  • Jan 23, 2013 10:07am Jan 23, 2013 10:07am
Quoting sho
Thanks a lot, Mr. Pip. Couldn't have done it without all the time you, Bary and everyone else involved have dedicated...

Truly some amazing stuff!
I'm sure I speak for Barry and the others that help out here.

It's a pleasure and a joy when you see others benefit from a selfless act. I am happy to be able to share with you a little bit of trading knowledge. Keep up the good work.
If you fail to plan, you plan to fail.
  • #1,982
  • Jan 23, 2013 10:10am Jan 23, 2013 10:10am
Quoting Mr. Pip
I'm seeing green PIPS across the board. I guess we are doing something right. LOL.
maybe i didnt enter at that prz, i got stopped out will check your picture once im done. hey only one losing trade though
  • #1,983
  • Jan 23, 2013 10:11am Jan 23, 2013 10:11am
two przs defined right now, see what happens.

Attached Image (click to enlarge)
Click to Enlarge Name: 1_23_2_przs.jpg Size: 114 KB
  • #1,984
  • Jan 23, 2013 10:15am Jan 23, 2013 10:15am
Quoting Starry
two przs defined right now, see what happens.

Attachment
i swear it would be valid to short, because a wick got rejected off of the prz a couple of candles before, but i will wait till it closes inside prz.
  • #1,985
  • Jan 23, 2013 11:47am Jan 23, 2013 11:47am
Quoting Mr. Pip
I'm sure I speak for Barry and the others that help out here.

It's a pleasure and a joy when you see others benefit from a selfless act. I am happy to be able to share with you a little bit of trading knowledge. Keep up the good work.
Mr. Pip, great thread and thanks for your time and efforts. I read this thread and it reinforced my long held view that fibs are the right way to go. With confluence of ratios and patterns/harmonics, this is magical!

I had one question on entry. What is the best point to enter a trade. Is it as the swing forms (we never know if the swing will form till after the fact? or is it after the swing forms at the 61 (for an aggressive C trade) or 127 for a PRZ trade though entry might be very late in this case. For eg, if candle enters prz, do we place the trade risking that price may never reverse and close beyond the 161 or should we wait for swing to form at PRZ and then enter if rules are met. Thanks again for everything you do.
  • #1,986
  • Jan 23, 2013 12:11pm Jan 23, 2013 12:11pm
Quoting forextrader9
Mr. Pip, great thread and thanks for your time and efforts. I read this thread and it reinforced my long held view that fibs are the right way to go. With confluence of ratios and patterns/harmonics, this is magical!

I had one question on entry. What is the best point to enter a trade. Is it as the swing forms (we never know if the swing will form till after the fact? or is it after the swing forms at the 61 (for an aggressive C trade) or 127 for a PRZ trade though entry might be very late in this case. For eg, if candle enters prz, do we place...
The PRZ is determined by a combination of different elements that converge in this area. This area is often the beginning of a new swing and the best place to enter the market. You want to see a price action confirmation that this will withstand the attack. So basically you are looking for price rejection of the level.
If you fail to plan, you plan to fail.
  • #1,987
  • Jan 23, 2013 12:23pm Jan 23, 2013 12:23pm
Quoting Mr. Pip
Todays trades 57 Pips
Why did you not enter a buy at the bottom prz? what price action were you looking for (what sort of stalling?). A one bar stall like a hammer?
  • #1,988
  • Jan 23, 2013 12:31pm Jan 23, 2013 12:31pm
Quoting Starry
Why did you not enter a buy at the bottom prz? what price action were you looking for (what sort of stalling?). A one bar stall like a hammer?
The confluence was weak and there was too much strength coming into the PRZ and I had already achieved my daily goal.
If you fail to plan, you plan to fail.
  • #1,989
  • Jan 23, 2013 12:51pm Jan 23, 2013 12:51pm
Quoting Mr. Pip
The PRZ is determined by a combination of different elements that converge in this area. This area is often the beginning of a new swing and the best place to enter the market. You want to see a price action confirmation that this will withstand the attack. So basically you are looking for price rejection of the level.
Thank you. So, in other words, you do not just enter a trade because the conditions for ABCD are met, you wait for price rejection at a PRZ before placing a trade. Only if price action confirms is that a PRZ, otherwise it is not?

Also, what do you mean by order flow? Is it just trend?
  • #1,990
  • Jan 23, 2013 12:53pm Jan 23, 2013 12:53pm
Quoting Mr. Pip
The confluence was weak and there was too much strength coming into the PRZ and I had already achieved my daily goal.
What do you consider weak confluence vs strong?
  • #1,991
  • Jan 23, 2013 1:03pm Jan 23, 2013 1:03pm
Quoting forextrader9
Thank you. So, in other words, you do not just enter a trade because the conditions for ABCD are met, you wait for price rejection at a PRZ before placing a trade. Only if price action confirms is that a PRZ, otherwise it is not?

Also, what do you mean by order flow? Is it just trend?
Yes order flow is the trend. What you want to see is price deceleration as its coming into a PRZ. You definitely do not want to see acceleration of price. You also want to see price behavior and get a price action confirmation before you enter. I only enter blindly when there is lots of confluence or when I'm not there particularly on the larger time frames when a pattern is going to complete and I might not be there to take the trade but I do not trade the higher timeframe a anymore and don't take trades blindly anymore. Not because of performance but I'm a Funtime trader and I'm there to take trades manually
If you fail to plan, you plan to fail.
  • #1,992
  • Jan 23, 2013 1:07pm Jan 23, 2013 1:07pm
Quoting Mr. Pip
The confluence was weak and there was too much strength coming into the PRZ and I had already achieved my daily goal.
I did enter at Lower PRZ and got stopped out almost immediately. I was in the aggressive C from the top. I did think I had some confluence there but way to much bearish momentum. Risky trade should not have taken.
Barry
  • #1,993
  • Jan 23, 2013 1:09pm Jan 23, 2013 1:09pm
Quoting Starry
What do you consider weak confluence vs strong?
Look at the first trade form last night that had strong confluence. Strong confluence has structure and other fibs coming together in the PRZ. Weak confluence is only having the convergence of a pattern completion and the fib extension and nothing else.
If you fail to plan, you plan to fail.
  • #1,994
  • Jan 23, 2013 1:20pm Jan 23, 2013 1:20pm
Quoting Bary
I did enter at Lower PRZ and got stopped out almost immediately. I was in the aggressive C from the top. I did think I had some confluence there but way to much bearish momentum. Risky trade should not have taken.
Heres a possible harmonic reason to enter later downward. I entered at a prz just above this and got stopped out, i defined the prz using the wrongly sized swings. I also had a possible prz farther upward but didnt enter because i saw no rejection.

I didn't find this prz till after.


Attached Image (click to enlarge)
Click to Enlarge Name: PRZ_work1.jpg Size: 149 KB
  • #1,995
  • Jan 23, 2013 2:12pm Jan 23, 2013 2:12pm
Hi Mr Pip and everyone,

I am in a different time zone to most people on this thread, so my day is just about to start and I also have a day job. My trading time is when London opens (at night here downunder). I really appreciate your comments and diagrams. The comments on confluence and Price Zone have been valuable. My area of trading weakness is how to enter the price resistance zone. In some diagrams there might be just one bar within 61.8 and an entry has been made,(Agressive C I believe), whilst other times a number of bars show a clear area of confluence. (entry D). Mr Pip is it possible to go back over these specific entry points and the bars you look at, perhaps using the GBPJPY as an example currency and if possible on a 1min or tick chart.

Many thanks
Ymmit
  • #1,996
  • Jan 23, 2013 2:18pm Jan 23, 2013 2:18pm
Quoting Mr. Pip
Yes order flow is the trend. What you want to see is price deceleration as its coming into a PRZ. You definitely do not want to see acceleration of price. You also want to see price behavior and get a price action confirmation before you enter. I only enter blindly when there is lots of confluence or when I'm not there particularly on the larger time frames when a pattern is going to complete and I might not be there to take the trade but I do not trade the higher timeframe a anymore and don't take trades blindly anymore. Not because of performance...
That makes perfect sense, thank you.

Based on your response on a different post, having just a confluence of harmonics/pattern and fib extension of AB is weak. We need to look at other fibs, what would these be? BC?
  • #1,997
  • Jan 23, 2013 2:26pm Jan 23, 2013 2:26pm
Quoting Mr. Pip
Look at the first trade form last night that had strong confluence. Strong confluence has structure and other fibs coming together in the PRZ. Weak confluence is only having the convergence of a pattern completion and the fib extension and nothing else.
k, you mean the fib extension of the pattern, like the fib extension of AB in an abcd. cool thx.
  • #1,998
  • Edited 2:41pm Jan 23, 2013 2:28pm | Edited 2:41pm
Quoting kyurem
some more longs added @ 88.40 on Triangle structure breakout.

Heavily loaded now....
had to be very patient on that one.
Scaled out 1/3 of my position....on this first targeted area.
The other 2/3 are BE for next targets @88.95 and @89.25
Attached Image (click to enlarge)
Click to Enlarge Name: BAT-usdjpy-H1-20130123_ok.jpg Size: 140 KB
  • #1,999
  • Jan 23, 2013 3:44pm Jan 23, 2013 3:44pm
Quoting forextrader9
That makes perfect sense, thank you.

Based on your response on a different post, having just a confluence of harmonics/pattern and fib extension of AB is weak. We need to look at other fibs, what would these be? BC?
BC is basically the same as extending AB, you just get another fib number. a retracement + an extension is good. Or the completion of abcd and another smaller ab = cd or whatever pattern at the completion point of the larger abcd. Or the completion of the c point (i.e. a retracement) along with the completion of a smaller ab = cd (an extension)
  • #2,000
  • Jan 23, 2013 3:57pm Jan 23, 2013 3:57pm
Potential Eur/Usd daily opportunities.
Attached Image (click to enlarge)
Click to Enlarge Name: eu daily harmonics.jpg Size: 105 KB
Don't follow me! You can and most likely will LOSE all your money!!!!
6 traders viewing now